DHCR Must Investigate Further Where No Tax Match Found for Tenant's Household Income

Landlord applied for high-rent/high-income deregulation of tenant's rent-stabilized apartment in 2015 when tenant's rent was $2,500 per month or more. The DRA ruled against landlord because the State Department of Taxation and Finance (DTF) couldn't verify tenant's annual household income for 2013 and 2014. Landlord appealed, and the case was reopened. Tenant wasn't required to explain why DTF couldn't make a match, and tenant had submitted all information requested by the DRA. Tenant also explained that she was exempt from taxation on her United Nations salary and wasn't required to file tax returns.  However, since tenant also advised the DRA that her daughter had filed tax returns for both tax years listing the apartment address, the DRA should have further investigated why DTF failed to make a match for tenant's daughter and should have sought more information from tenant to determine whether household income was at least $200,000 per year.

CF E 86 LLC, SM E 86 LLC, LSG E 86 LLC: DHCR Adm. Rev. Docket No. FR410042RO (11/2/17) [6-pg. doc.]